Additionally, you can access valuable information from the State of Colorado’s official website,Colorado.gov, as well as the federal government’s official business website,Business.gov.

Finally, consult with a knowledgeable professional, such as an attorney or an accountant, who can provide guidance in answering important questions, such as the best type of entity for your situation or the tax implications associated with a certain entity type.

Q2. I want to begin a Sole Proprietorship or General Partnership. What do I need to do?

A2. The trade name of a sole proprietorship or a general partnership can be registered by filing a Statement of Trade Name with the Secretary of State's office. Filing a Statement of Trade Name creates a record of the name.

Information regarding starting a business can be found in the "Help and Resources" section on theBusiness Home page. For information regarding state taxes and state sales tax licensing, contact the Colorado Department of Revenue,www.colorado.gov/revenue. For information regarding federal taxes and obtaining an employer identification number (EIN), contact the Internal Revenue Service,www.irs.gov.

Q3. How do I form an S corporation or C corporation?

A3.S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.

For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity.

The S or C corporation status is determined when filing with the Internal Revenue Service (IRS), www.irs.gov only. Questions should be addressed to the IRS or your legal, business, or tax advisor(s). The S or C corporation status is not a distinction made at our office.

Q4. How do I obtain a business license?

A4. The Business & Licensing Division of the Secretary of State’s office does not issue licenses to conduct business in Colorado. However, most businessesare first filed in our office. You may need to researchfederal, state, county, and local governmentlicensing requirements. Some licenses are issued at the Colorado Department of Revenue or Colorado Department of Regulatory Agencies (DORA) depending on the type of business you are conducting. Other licenses are issued through local city or county offices.